The Malaysian Insight

FORMER prime minister Najib Razak began his sworn testimony by describing the formation of 1Malaysia Development Berhad (1MDB) as well as the role of fugitive businessman Low Taek Jho, commonly known as Jho Low.

In reading the first part of a 243-page witness statement, Najib said he knew Low to be closely acquainted with the Yang di-Pertuan Agong when 1MDB’s precursor Terengganu Investment Authority (TIA) was formed in 2009.

“Jho Low, at the time, was a close acquaintance of Sultan Mizan Zainal Abidin of Terengganu, who was then the Yang di-Pertuan Agong. (Jho Low was also) close with the sister of the Yang di-Pertuan Agong, Tengku Rahimah Almarhum Sultan Mahmud.

“The TIA concept, as far as I understood, came about from discussions between Jho Low and Tuanku Mizan and the Terengganu government. I was made to understand that Jho Low was picked as an advisor to the chairman of the TIA board, who was Tuanku Mizan himself.”

Najib said in 2009, the Terengganu state government and Menteri Besar Terengganu Incorporate (MBTI) together with Sultan Mizan, decided to form a sovereign wealth fund with RM11 billion in capital, called the Terengganu Investment Authority.

The funds were supposed to be raised from Terengganu’s oil royalty amounting RM6 billion with the remaining RM5 billion to be raised from Islamic medium term notes (IMTN).

Najib said at the time, he was invited in his capacity as finance minister to facilitate the IMTN issuance.

“In the end, the state government and MBTI could not agree on the terms of the IMTN, even though they were issued. As a result, on August 8, 2009, the cabinet decided that the federal government should take over TIA.

“It was a decision reluctantly made to protect the state government and the Yang di-Pertuan Agong from embarrassment and to avoid a negative impact on Malaysia’s bond market.”

Najib identified the TIA directors as Ismee Ismail (who was then Lembaga Tabung Haji CEO); Mohd Bakke Salleh (Felda Holdings Bhd CEO); Azlan Zainol (KWAP CEO) and Shahrol Azral Ibrahim Halmi (TIA CEO).

On 1MDB’s management, Najib said he only dealt directly with the CEO and the 1MDB chairman.

 On whether Low had any role in 1MDB after TIA was taken over by the federal government, Najib replied: “As I have state earlier, Jho Low was the advisor to Tuanku Mizan in TIA.”

“He had shown himself to be someone who was very influential among Middle Eastern countries where I believe he was capable of facilitating investment dealings and shareholdings.

“These countries have cash surplus due to the rise in oil prices. Therefore, I believe that the influence and his connections would facilitate 1MDB’s objectives and investments.”

Najib’s seven criminal charges in the SRC International Sdn Bhd case are linked to RM4 billion in loans issued to the entity in 2011 and 2012, for which he is accused of receiving RM42 million in his accounts in 2014 and 2015.

SRC International is a former 1MDB subsidiary.

He is in the midst of reading his witness statement, which will be followed immediately with examination-in-chief by the defence, which is led by Muhammad Shafee Abdullah.

After that, Najib will be cross-examined by the prosecution, led by Attorney-General Tommy Thomas. – December 3, 2019.